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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AA Exams › Confusion
Which of the following supplier balances would indicate a high risk in relation to the COMPLETENESS of the
liability recorded at the year end?
A A supplier with a high balance at the year end and with a low volume of transactions during the year
B A supplier with a low balance at the year end and with a high volume of transactions during the year
C A supplier with a low balance at the year end and with a low volume of transactions during the year
D A supplier with a high balance at the year end and with a high volume of transactions during the year
This question had 2 separate answers, in past paper it says B and in BPP text it says D
Looks to me like a typo in BPP’s text. A low balance has greater potential for understatement (i.e. due to omission, transactions are incomplete). If a balance is high, it is far more likely to be complete.